Shearwater GeoServices (SHEARWATER) Q1 2025 earnings summary

Executive summary

• Achieved record 94% fleet utilization and strong operational and financial results in Q1 2025, with robust cash generation and higher activity across nine active vessels.

• Secured major contracts, including a three-year global capacity reservation with TotalEnergies and a significant 4D OBN survey for ExxonMobil in Guyana, supporting backlog growth.

• Backlog increased to just below USD 400 million at quarter-end and USD 340 million at end of May, providing a solid base for future activity.

• Proactively optimizing costs and investment levels to align with expected softer market conditions and higher working capital requirements.

Financial highlights

• Q1 2025 revenue reached USD 189.4 million, up 54% year-over-year, driven by higher utilization and activity.

• EBITDA for Q1 2025 was USD 58.1 million, with a 31% margin, up from USD 15.1 million in Q1 2024.

• EBIT turned positive at USD 23.9 million versus a loss of USD 18.4 million a year ago.

• Net income for Q1 2025 was USD 8.9 million, reversing a net loss of USD 37.4 million in Q1 2024.

• Free cash flow was reported as both USD 45 million positive and USD 25 million negative due to different calculation methods; cash position at quarter-end was about USD 90 million.

Outlook and guidance

• Visibility for Q2 and Q3 is low, with fewer contract awards and expected decline in financial and operational performance versus Q1.

• Tender pipeline for H2 2025 is encouraging, with volume weighted toward year-end.

• Maintenance and growth CapEx for 2025 expected to be USD 30–40 million, with a cautious approach to multi-client investments.

• Longer-term demand for marine seismic expected to increase as E&P companies and NOCs invest in reserves and production.

• Cost-reduction and capital expenditure optimisation measures underway to maintain resilience.